Giving at Year End 2025

Plan Now for 2026: Tax-Smart Giving Opportunities

As we approach year-end, St. Mary’s Ryken High School wants to share an important update about federal tax changes taking effect in 2026 that may influence charitable giving. While generosity never goes out of style, the timing of your gift can affect its tax benefits.

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What’s Changing Starting in 2026

1) Slightly Reduced Benefit for Large Gifts

For those in the highest income bracket, the tax value of charitable deductions will be capped at roughly 35¢ per dollar given, down from ~37¢ in 2025.

➡️ If you’re considering a major gift or pledge payment, making it before December 31, 2025 may maximize your deduction value

2) A New “Floor” on Deductions

Beginning in 2026, the first 0.5% of your adjusted gross income (AGI) given to charity will no longer be deductible. For example: if your AGI is $1 million, the first $5,000 of charitable giving would not qualify for a deduction; everything beyond that remains eligible.

➡️ Example: if your AGI is $1 million, the first $5,000 of charitable giving won’t qualify for a deduction; everything beyond that remains deductible.

3) A Universal Charitable Deduction Returns

Even those who don’t itemize their tax deductions will again be able to deduct modest cash gifts—up to $1,000 for singles or $2,000 for couples filing jointly—for cash donations to qualified public charities such as St. Mary's Ryken.

4) IRA Qualified Charitable Distributions (QCDs) Remain Strong

If you’re age 70½ or older, QCDs from IRAs remain an excellent, tax-efficient way to give.

• They reduce taxable income,
• count toward required minimum distributions (RMDs), and
• are not affected by the new 0.5% “floor.”

What You Can Do Now

Complete 2025 gifts or pledge payments early—by December 31, 2025—to take advantage of current deduction values.

Explore charitable strategies such as QCDs, appreciated securities, or donor-advised funds.

Talk with your tax advisor to decide which approach best fits your goals and timing.

Our Gratitude

Your partnership and belief in St. Mary’s Ryken make a lasting difference — supporting exceptional educators, fueling innovation in the classroom, and ensuring students have every opportunity to thrive. Thank you for your generosity and thoughtful planning.

Thoughtful charitable planning ensures your generosity has the greatest impact—for you, your family, and future generations of St. Mary’s Ryken Knights.

For more information or a confidential conversation about your giving plans, please contact:

Michele Minicozzi, Director of Development
 📧 development@smrhs.org
 📞 301-373-4162

EIN: 52-0681146

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This information is provided for educational purposes only and does not constitute legal or financial advice. Please consult your personal advisor regarding the tax implications of your charitable giving.